China Everbright Bank Co. may raise as much as 21.7 billion yuan ($3.2 billion) from its initial public offering in Shanghai.
The bank set the sale price at 2.85 yuan to 3.1 yuan a share, according to a statement to the stock exchange today. It plans to sell as many as 7 billion shares.
Everbright Bank, which has been planning an IPO since June 2008, reduced the offering by 30 percent after Chinese stocks slumped, Chairman Tang Shuangning said July 22. China's banks are raising capital after extending a record $1.4 trillion in loans last year to fuel an economic recovery in the world's third-largest economy.
The company is China's 11th-largest bank by assets, with 482 outlets nationwide. Its plans to list had been derailed by a previous moratorium on IPOs imposed by the securities regulator.
Everbright Bank posted net income of 7.6 billion yuan in 2009, a 4 percent increase, according to its annual report. Its capital-adequacy ratio stood at 10.39 percent as of Dec. 31 and its non-performing loan ratio was 1.25 percent.
Central Huijin Investment Co., which holds stakes in China's biggest financial institutions on behalf of the central government, owns 59.82 percent of Everbright Bank before the IPO. Everbright Group and its Hong Kong-listed affiliate, China Everbright Ltd., hold a combined 11.66 percent of the lender.
